S T A T E O F N E W Y O R K
________________________________________________________________________
8371
I N S E N A T E
June 25, 2010
___________
Introduced by Sen. ESPADA -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four, and the
emergency housing rent control law, in relation to adjustment of maxi-
mum allowable rent
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 253 of the laws of 1993, is amended to read as follows:
(e) The landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph shall
be equal to [one-fortieth] ONE-SIXTIETH of the total cost incurred by
the landlord in providing such modification or increase in dwelling
space, services, furniture, furnishings or equipment, including the cost
of installation, but excluding finance charges, provided further [than]
THAT an owner who is entitled to a rent increase pursuant to this
subparagraph shall not be entitled to a further rent increase based upon
the installation of similar equipment, or new furniture or furnishings
within the useful life of such new equipment, or new furniture or
furnishings. The owner shall give written notice to the city rent agency
of any such adjustment pursuant to this subparagraph[.]; or
S 2. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written tenant consent to the rent increase. In
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17900-01-0
S. 8371 2
the case of a vacant housing accommodation, tenant consent shall not be
required.
(A) The permanent increase in the legal regulated rent for the
affected housing accommodation shall be [one-fortieth] ONE-SIXTIETH of
the total cost incurred by the landlord in providing such modification
or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of installation, but excluding finance
charges. [Provided further that an]
(B) AN owner who is entitled to a rent increase pursuant to this para-
graph shall not be entitled to a further rent increase based upon the
installation of similar equipment, or new furniture or furnishings with-
in the useful life of such new equipment, or new furniture or
furnishings.
(C) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH UNTIL THE
LANDLORD HAS PROVIDED THE TENANT WITH A RIDER PURSUANT TO SUBDIVISION
(D) OF THIS SECTION, INCLUDING AN EXPLANATION OF HOW THE RENT IN THE
VACANCY LEASE HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS OF ALL EXPEND-
ITURES SUPPORTING A RENT INCREASE UNDER THIS PARAGRAPH.
(D) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH IN ANY
BUILDING WHERE THE DEPARTMENT OF HOUSING AND COMMUNITY RENEWAL HAS
DETERMINED THAT THE OWNER IS NOT MAINTAINING ALL REQUIRED SERVICES, OR
IN WHICH THERE ARE CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUN-
TY, STATE, OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF SUCH
SERVICES.
(E) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TWENTY PERCENT OF
THE RENT CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE AN EXPLANA-
TION OF HOW THE VACANCY RENT WAS COMPUTED, AND ALL DOCUMENTS NECESSARY
TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUDING BUT NOT LIMITED
TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS CONTEMPORANEOUSLY
WITH THE IMPROVEMENTS ALLEGED, AND CONTRACTOR'S AFFIDAVITS INDICATING
THAT THE INSTALLATION WAS COMPLETED AND PAID IN FULL. UPON RECEIPT OF
ALL DOCUMENTS SUBMITTED BY THE OWNER, THE DEPARTMENT OF HOUSING AND
COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH
INCREASE IN WHOLE OR IN PART. BASED UPON SUCH DETERMINATION, THE DEPART-
MENT OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER A REFUND TO THE TENANT
EQUAL TO THE AMOUNT COLLECTED IN EXCESS OF THE LEGAL REGULATED RENT
APPROVED BY THE DEPARTMENT OF HOUSING AND COMMUNITY RENEWAL.
(F) IF THE DEPARTMENT OF HOUSING AND COMMUNITY RENEWAL DETERMINES THAT
THE OVERAGE WAS WILLFUL, IT MAY ORDER THE LANDLORD TO PAY TO THE TENANT
AN ADDITIONAL AMOUNT NOT TO EXCEED THREE TIMES THE EXCESS CHARGED.
(G) THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR ANY HOUSING
ACCOMMODATION SUBJECT TO AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR
NOT SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH
SHALL CONTAIN A DETAILED BREAKDOWN OF THE COSTS OF ALL IMPROVEMENTS
UNDERLYING SUCH INCREASE.
S 3. Paragraph 2 of subdivision d of section 26-511 of the administra-
tive code of the city of New York is renumbered paragraph 3 and a new
paragraph 2 is added to read as follows:
(2) FOR VACANCY LEASES, SUCH RIDER SHALL ALSO INCLUDE A NOTICE OF THE
PRIOR LEGAL RENT, IF ANY, THAT WAS IN EFFECT IMMEDIATELY PRIOR TO THE
VACANCY, AN EXPLANATION OF HOW THE RENTAL AMOUNT HAS BEEN COMPUTED,
INCLUDING A DETAILED BREAKDOWN OF THE NATURE AND COST OF ANY IMPROVE-
MENTS UNDERLYING AN INCREASE UNDER PARAGRAPH THIRTEEN OF SUBDIVISION C
OF THIS SECTION, AND A STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS
RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW.
S. 8371 3
S 4. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as added by chapter 253 of the laws of
1993, is amended to read as follows:
(1) there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of new equipment
or improvements or new furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The permanent increase in the legal regulated
rent for the affected housing accommodation shall be [one-fortieth]
ONE-SIXTIETH of the total cost incurred by the landlord in providing
such modification or increase in dwelling space, services, furniture,
furnishings or equipment, including the cost of installation, but
excluding finance charges. Provided further [than] THAT an owner who is
entitled to a rent increase pursuant to this paragraph shall not be
entitled to a further rent increase based upon the installation of simi-
lar equipment, or new furniture or furnishings within the useful life of
such new equipment, or new furniture or furnishings.
S 5. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti-
tuting the emergency housing rent control law, as amended by chapter 253
of the laws of 1993, is amended to read as follows:
(5) the landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled to
a rent increase where there has been a substantial modification or
increase of dwelling space or an increase in the services, or installa-
tion of new equipment or improvements or new furniture or furnishings
provided in or to a tenant's housing accommodation. The permanent
increase in the maximum rent for the affected housing accommodation
shall be [one-fortieth] ONE-SIXTIETH of the total cost incurred by the
landlord in providing such modification or increase in dwelling space,
services, furniture, furnishings or equipment, including the cost of
installation, but excluding finance charges provided further that an
owner who is entitled to a rent increase pursuant to this clause shall
not be entitled to a further rent increase based upon the installation
of similar equipment, or new furniture or furnishings within the useful
life of such new equipment, or new furniture or furnishings. The owner
shall give written notice to the commission of any such adjustment
pursuant to this clause; or
S 6. This act shall take effect immediately and shall apply to all
individual apartment improvements and other related expenditures unless
physical work thereon commenced or legally binding signed contracts were
entered into on or before such effective date; provided that:
(a) the amendments to section 26-405 of the city rent and rehabili-
tation law made by section one of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
act;
(b) the amendments to section 26-511 of chapter 4 of title 26 of the
administrative code of the city of New York made by sections two and
three of this act shall expire on the same date as such law expires and
S. 8371 4
shall not affect the expiration of such law as provided under section
26-520 of such law;
(c) the amendments to section 6 of the emergency tenant protection act
of nineteen seventy-four made by section four of this act shall expire
on the same date as such act expires and shall not affect the expiration
of such act as provided in section 17 of chapter 576 of the laws of
1974; and
(d) the amendments to section 4 of the emergency housing rent control
law made by section five of this act shall expire on the same date as
such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946.